We might be reaching the point where virtual currencies start to pose a real challenge to the existing ones: the dollar DXY
+0.02% , euro EURUSD
-0.03% , yen USDJPY
-0.02% and pound GBPUSD
-0.73% . Indeed, at the end of last year, the ECB put out a paper warning about
the competition from these new currencies. Although still small, the
paper suggested they might undermine the credibility of national
currencies.

It is not hard to see why central bankers are worried. Right now,
virtual currencies are tiny. Hardly anyone is taking them seriously. And
yet people are increasingly losing faith with traditional currencies.
They are losing value steadily to inflation. And quantitative easing and
currency wars mean they are constantly being debased. They are open to
alternatives.